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Country inequality rankings and conversion schemes

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  • Schröder, Carsten
  • Bönke, Timm

Abstract

Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs. Using data from the Luxembourg Income Study, the authors show the sensitivity of country inequality rankings to conversion schemes and explain the finding by means of inequality decomposition. A bootstrap approach is implemented to test for statistical significance of the results. --

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2012-7.

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Date of creation: 2012
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Handle: RePEc:zbw:ifwedp:20127

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Keywords: Inequality; equivalence scale; equivalent income; weighting scheme; decomposition;

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Cited by:
  1. Lynn A. Karoly & Carsten Schröder, 2014. "Fast Methods for Jackknifing Inequality Indices," SOEPpapers on Multidisciplinary Panel Data Research 643, DIW Berlin, The German Socio-Economic Panel (SOEP).

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